B2L remortgaging up 11% in October
Valuations for buy-to-let remortgaging were up 11 per cent in October compared to September, according to Connells’ latest housing market activity report.
While valuations for new buy-to-let purchases fell 6 per cent in October compared to September, Connells says buy-to-let valuations in general are up 10 per cent year-on-year and is a sign of landlords with low LTVs taking advantage of favourable interest rates available to refinance or expand their portfolios.
A recent survey by buy-to-let lender Paragon for the third quarter found that remortgages had been the most popular cases handled by brokers.
Connells corporate services director John Bagshaw says: “Even if credit conditions ease in the next year, it will take a long time before the number of people buying their first home reflects pre-crisis levels, and private rental will continue to expand as landlords look to cater for the UK’s growing population.”
But there was also good news for the residential sector with valuations up 7 per cent in October year-on-year, following a smaller than normal seasonal monthly contraction from the September peak.
While activity fell by 8 per cent on a monthly basis, it was a much gentler decrease than the average drop of 23 per cent between September and October since 2007.
Connells says the climb in valuations activity followed a strong year-on-year improvement in first-time buyer numbers.
Valuations for new buyers were up 21 per cent compared to last October.
Despite the expected monthly slowdown, numbers of first-time buyers fell by only 10 per cent, compared to the historic average fall of 28 per cent.
Article courtesy of Mortgage Strategy